Western Digital Corp

westerndigital.com

What Do They Do?

Sells high-capacity hard drives to cloud and enterprise customers, and storage drives for computer makers and consumers.

How Do They Make Money?

Customers buy hard drives and other storage products, typically paying soon after the sale.

revenue

Segment	Share	How money arrives
Cloud Sold outright	89% FY2023: 76%	Sold outright
Client Devices Sold outright	5.6% FY2023: 11%	Sold outright
Consumer Sold outright	5.4% FY2023: 13%	Sold outright

Who Are Their Customers?

Its buyers include cloud service providers and computer makers, plus resellers, distributors and retailers worldwide. Sales teams work with customers on system design, testing and qualification.

Customers above 10% of revenue, FY2026

of revenue from three customers (16%, 15%, 13%)

FY2024: no customer at 10% or more of revenue

Do Revenues Turn Into Profits?

Yes. It kept 73 cents of every revenue dollar as net income in FY2026 and turned 27 cents into free cash flow.

Operating income, FY2026

34% of revenue

▲ +91% vs FY2025 ($2.3B, 25%)

Net income, FY2026

73% of revenue

▲ +399% vs FY2025 ($1.9B, 20%)

Free cash flow, FY2026

27% of revenue

▲ +175% vs FY2025 ($1.3B, 13%)

How Are They Changing?

Since the FY2026 annual report

Latest quarter: Q1 FY2027, the three months to Oct 2, 2026

Revenue: ▲ +55%; vs $2.8B in Q1 FY2026
Net income: ▲ +51%; vs $1.2B in Q1 FY2026

Cloud share of revenue

Shrinking. Revenue fell 31% in 4 years, from $18.8B in FY2022 to $12.9B in FY2026, about 9% a year.

Shift to HDD products The older report described Flash and HDD products across its markets. The current report describes an HDD-based storage business, with HDD products for cloud, client and consumer markets.

Revenue over time

Cloud Client Devices Consumer

$20B$10B$0

FY2022 FY2023 FY2024 FY2025 FY2026

Who Do They Compete With?

Competes with Seagate Technology Holdings and Toshiba Electronic Devices & Storage

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